UPDATE: Jefferies Slashes Numbers on Research In Motion (RIMM), Sees Another Profit Warning Around the Corner
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Price: $14.64 +12.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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(Updated - March 1, 2012 7:43 AM EST)
Jefferies slashed estimates and its price target on Research In Motion Ltd. (NASDAQ: RIMM) from $15 to $12 Thursday, suggesting 15 percent downside from yesterday's close. The firm maintained their lowest rating on the stock - Underperform.
Analyst Peter Misek said there is a greater than 50% chance that RIM will negatively pre-announce the Feb quarter. Specifically, Misek said RIM will miss the low-end of their 11M to 12M guidance range. He adjusted Feb quarter estimates from 12M units to 10.5M units and revenue/EPS to $4.2B/$0.69.
"If RIM does make their guidance we believe the difference between sell-in and sell through would cause a correction in the May quarter suggesting a very weak guide for May. Either way we see consensus numbers as too high," the analyst commented.
Sales of both RIM's low-end and higher-end phones continue to be challenged. "We believe RIM's low-end handset sales trends have continued to deteriorate in North America, Latin America and Europe," the analyst said. RIM's higher-end phones continue to be challenged by iPhone and Android. "We believe an iPhone 5 launch (we expect end of Q2/Q3) ahead of the BB10 launch (we expect Sep) will be particularly troubling."
Misek said consensus estimates for FY13 are too high. The firm cut Q4 EPS from $0.82 to $0.69, FY12 from $3.17 to $3.03 and FY13 from $2.00 to $1.87.
For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.
Shares of Research In Motion Ltd. closed at $14.17 yesterday.
Jefferies slashed estimates and its price target on Research In Motion Ltd. (NASDAQ: RIMM) from $15 to $12 Thursday, suggesting 15 percent downside from yesterday's close. The firm maintained their lowest rating on the stock - Underperform.
Analyst Peter Misek said there is a greater than 50% chance that RIM will negatively pre-announce the Feb quarter. Specifically, Misek said RIM will miss the low-end of their 11M to 12M guidance range. He adjusted Feb quarter estimates from 12M units to 10.5M units and revenue/EPS to $4.2B/$0.69.
"If RIM does make their guidance we believe the difference between sell-in and sell through would cause a correction in the May quarter suggesting a very weak guide for May. Either way we see consensus numbers as too high," the analyst commented.
Sales of both RIM's low-end and higher-end phones continue to be challenged. "We believe RIM's low-end handset sales trends have continued to deteriorate in North America, Latin America and Europe," the analyst said. RIM's higher-end phones continue to be challenged by iPhone and Android. "We believe an iPhone 5 launch (we expect end of Q2/Q3) ahead of the BB10 launch (we expect Sep) will be particularly troubling."
Misek said consensus estimates for FY13 are too high. The firm cut Q4 EPS from $0.82 to $0.69, FY12 from $3.17 to $3.03 and FY13 from $2.00 to $1.87.
For an analyst ratings summary and ratings history on Research In Motion Ltd. click here. For more ratings news on Research In Motion Ltd. click here.
Shares of Research In Motion Ltd. closed at $14.17 yesterday.
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